ring a special sales the amount of $22,000 at a rate of 4.5%/year compounded monthly. Her bank is now charging 6.1%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have paid in interest payments over th life of the loan by borrowing from the manufacturer instead of her bank? (Round your answers to the nearest cent.) interest paid to manufacturer $ interest paid to bank $
ring a special sales the amount of $22,000 at a rate of 4.5%/year compounded monthly. Her bank is now charging 6.1%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have paid in interest payments over th life of the loan by borrowing from the manufacturer instead of her bank? (Round your answers to the nearest cent.) interest paid to manufacturer $ interest paid to bank $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in
the amount of $22,000 at a rate of 4.5%/year compounded monthly. Her bank is now charging 6.1%/year compounded monthly
for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of
interest she would have paid at the end of 3 years for each loan. How much less will she have paid in interest payments over the
life of the loan by borrowing from the manufacturer instead of her bank? (Round your answers to the nearest cent.)
interest paid to manufacturer
interest paid to bank
savings
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